Indian equity markets are set to open on a cautiously optimistic note, attempting to build on the previous session’s rebound driven by easing geopolitical tensions in the Middle East and tentative signs of de-escalation in the U.S.–Iran conflict. The shift helped cool crude oil prices, offering immediate relief to global markets and lifting investor sentiment.

However, Foreign Institutional Investors (FIIs) remained net sellers, offloading ?8,331 crore on April 1, reflecting lingering caution and a lack of strong conviction in the emerging de-escalation narrative. In contrast, Domestic Institutional Investors (DIIs) provided strong support, helping absorb selling pressure and sustain the recovery.

The Indian rupee remained under pressure, though it showed signs of stabilising, supported by improving global risk sentiment. Overall, the near-term outlook appears mildly bullish, underpinned by easing crude prices, improving geopolitical cues, and steady DII inflows. However, markets are likely to remain volatile and event-driven, with close attention on crude oil movements, FII activity, and further developments in West Asia. 

Technical view

Nifty 50

Nifty 50 is expected to open with a cautiously positive bias after the recent rebound, with the index closing near the 22,650–22,700 zone. Technically, it is witnessing a short-term pullback within a broader corrective trend, while continuing to trade below key resistance levels. The 22,900–23,000 zone remains a crucial resistance area; a sustained move above this range could extend the recovery toward 23,200–23,500, supported by follow-through buying. On the downside, 22,600–22,500 acts as an important support zone, and a break below this level may trigger renewed selling pressure, potentially dragging the index toward 22,300, followed by 21,700, which remains a strong demand zone. The near-term bias is cautiously positive, but the broader trend remains weak, with a sell-on-rise approach preferred unless the index sustains above 23,000.

Bank Nifty

Bank Nifty is expected to trade with a cautious to mildly positive bias, supported by strength in the broader market and relative resilience in banking stocks. From a technical perspective, the 51,900–52,000 zone acts as an immediate resistance. A decisive breakout above this range could extend the upmove toward 52,300–52,500, backed by fresh buying momentum. On the downside, 51,200–51,000 remains a crucial support zone. A failure to hold above these levels may reintroduce selling pressure, potentially dragging the index toward 50,500. The short-term bias remains cautiously positive with relative strength, the broader trend continues to be fragile, and the index is likely to face selling pressure at higher levels unless it sustains above key resistance zones.